Innovation Fundamentals

Question 1

What is innovation?

Answer 1

New commercialized offerings or processes that differ significantly from what existed before.

It’s risky, costly, can be copied, need protection, usually happen outside routine operation, created resistance, combination of actors, combination of needs and tech solution.

Question 2

Management of innovation?

Answer 2

Requires different skills, tools, and incentive.

Because it’s abt understanding nature of inno, org changes, origin of ideas, selection / development / implementation of the idea, and related strategies.

Question 3

The benefits of inno for consumers and society?

Answer 3

New & improved good
Reduced cost
Health
Wealth
Welfare

Question 4

Benefits of inno for firms?

Answer 4

Higher chance of surviving
Higher productivity
Higher profits
Higher value
Higher credit
Higher wage & quality of life

Question 5

Firms operate in changing environment because?

Answer 5

Globalization - more mkt segment
Digital tech - ex. Zipcar
Social networking

Question 6

Innovation vs imitation

Answer 6

R&D investment
Gestation period
Success rate

But get to monopolize the mkt

Question 7

Successful products

Answer 7

User - business - technology

User-centered, business-driven, technology-driven

Question 8

Risks in generating innovations?

Answer 8

OF MCOT

Organizational
Financial
Market
Competitive
Operational
Technological

Question 9

Funnel

Answer 9

3000 -> 1

Question 10

Likely cause of failures?

Answer 10

Doesn’t meet user need
Doesn’t meet tech spec

Too expensive
Too late to the mkt
Not enough differentiation
Not comply with regulation
Compete with own product
Too diff from own product (not align)

Question 11

Types of inno?

Answer 11

Product
Service
(new offering to end users)
Process
(new way to conduct biz)

Question 12

Business model & its innovation

Answer 12

Way of doing business ~ creating and delivering value to customers and earning profits from it

• -> who what how?
• -> mkt offers way

Question 13

Extent of innovation?

Answer 13

Incremental - continuing improvements, small modification, common
Radical - discontinuing changes, high R&D, high costs, high improvement

Change of Techno-economic paradigm = tech revolutions affecting the entire economy: open new mkt, alter cost structure, etc

Question 14

Characteristics of incremental inno?

Answer 14

Reinforce capability of firms
Reinforce capability of product (cumulative)
Stable design
Stable markets
Stable market share

Question 15

Characteristic of radical inno?

Answer 15

New sets of principles
New market
New market entry
Dramatic increase in performance

Question 16

Incremental innovators excel in?

Answer 16

Cost reduction
Minor modification
Adding features
First to the mkt
More efficient production
High product egulity

Question 17

Radical innovators excel in?

Answer 17

New ideas
New features
New markets
New customers
New actors
New org structure